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CIM Group expands with acquisition of MAS Energy’s RNG development platform

CIM Group expands with acquisition of MAS Energy’s RNG development platform
CIM Group has acquired 100% of the renewable natural gas (RNG) development platform of MAS CanAm, LLC, an affiliate of MAS Energy, LLC (MAS Energy).

US-headed community-focused real estate and infrastructure owner, operator, lender, and developer CIM Group has announced that it has acquired 100 percent of the renewable natural gas (RNG) development platform of MAS CanAm, LLC, an affiliate of MAS Energy, LLC (MAS Energy), a leading developer, owner and operator of landfill gas-based RNG in the United States (US) and Canada.

As part of the transaction, the value of which has not been disclosed, the platform will be renamed Terreva Renewables (Terreva).

The deal also includes a portfolio of seven projects currently under construction or in development.

Terreva is expected to produce RNG (aka biomethane) by year-end 2022 and will be a significant participant in the North American RNG sector, with the initial portfolio expecting to produce more than 3.9 million mmbtu of RNG per annum.

CIM Group’s acquisition of Terreva represents a marquee transaction in the RNG sector that came about as a result of our long-standing commitment to and experience in renewable energy, and our strong, established relationship with MAS Energy. We continue to believe RNG is a crucial component of the global energy transition and are excited to contribute as a leader in decarbonization, said Avi Shemesh, Co-Founder, and Principal, of CIM Group.

Grow to become a leading RNG player

Since its inception in 1994, CIM has focused on real estate and infrastructure projects that serve the needs of communities throughout the Americas and is committed to investing in sustainable assets.

CIM is a United Nations Principles for Responsible Investment (UNPRI) signatory and its infrastructure projects have been recognized for sustainability by the California Organized Investment Network (COIN), a division of the California Department of Insurance.

CIM Group plans to meaningfully grow the Terreva Renewables platform in North America and further establish it as a leading player in RNG.

Policy-driven growth opportunities

RNG continues to grow in use as the United States transitions to renewable fuels, supported on a Federal level by the Renewable Fuel Standard (RFS) program and by various State-level programs, such as California’s Low Carbon Fuel Standard (LCFS) and Oregon’s Clean Fuels Program.

Utilities and other thermal energy end users are also increasingly turning to RNG as a method of reducing or eliminating their carbon footprint, either through voluntary means or regulation such as California’s Senate Bill 1440 and British Columbia’s Greenhouse Gas Reduction Regulation.

Given RNG’s versatility, Terreva’s go-forward revenue strategy is to include a mix of high-quality transportation-related customers, investment-grade utilities, and other institutional off-takers under long-term fixed-price contracts. This flexibility makes it an extremely important resource in the fight against climate change, added Avi Shemesh.

Terreva’s initial portfolio comprises RNG projects under construction in Canada, in Vancouver, British Columbia (BC), and in the United States including Appleton, Wisconsin (WI); McElhattan, Pennsylvania (PA); Grayslake, Illinois (IL); and Suffolk, Virginia (VA), and exclusive gas rights for two additional projects in North Carolina (NC).

As part of the transaction, the existing development team will continue leading the company.

In addition to RNG, CIM Group has waste-to-value experience as a partner with Bolder Industries, a producer of sustainable plastic and rubber products created from used tires that would otherwise be landfilled.

Baker Botts LLP served as legal advisor to CIM Group in the transaction. MAS Energy was advised by Kirkland & Ellis LLP and Cantor Fitzgerald LP.

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